Implementing Customer Relationship Management in the Hotel Sector

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Marianna Sigala Customer Relationship Management in Hotels The extent to which the use of the stored guest information helped: (5 point scale, not at all - very much) 1 – 60 rooms SD 61 + room s SD t-value Understanding guests needs and requirements Product development and 3.41 1.09 3.82 1.1 2.305 innovation Personalising promotion and 3.78 1.08 4.56 1.32 2.671 communication strategies 3.6 1.45 4.23 0.87 2.893 p. DO NOT DO IT 1 – 60 roo ms 61 + roo ms 0.022 * 0.027 0 0 * 0.028 0 0 * 27 5 Personalising staff-guests encounters Developing frequent, loyalty 3.51 1.13 3.85 0.89 1.001 0.132 1 2 and reward programmes Personalising guests-ICT 4.00 41 42 interactions 3.00 0.001 41 42 Enhancing customer service Enhancing internal 3.10 1.16 3.65 0.99 3.372 * 0 0 communication 2.10 0.81 3.40 1.07 4.001 0.000 0 0 Personalising reservation process 3.44 1.15 3.66 1.04 2.046 0.041 * 1 2 Personalising pricing/yield management strategies Identifying and handling 3.98 1.21 3.20 9 42 guests’ complaints Developing affiliate marketing strategies with 3.91 0.99 4.02 1.23 0.251 0.802 0 0 other partners 41 43 Table 4. Use and value of guest information (knowledge management) (* indicates significance at a=0.05). The importance of having a formal and structured process for CRM implementation in large hotels is also illustrated on respondents’ perceptions regarding the role of CRM in achieving the following strategic outcomes (Table 5). So, it was more in large than small hotels whereby CRM was claimed to be implemented for achieving reduced costs, guests’ complaints and improving processes. This indicates that CRM implementation in larger hotels is greatly driven by a need to streamline and integrate fragmented and disconnected processes and guests’ information, which in turn would enable: enhanced monitoring/control and improvement of processes; reduction of complaints and costs of errors. Indeed, interviewees reported that CRM enabled the formalisation of guest – staff encounters and service processes, which standardisation enabled better management, staff training and
Marianna Sigala Customer Relationship Management in Hotels identification of problematic areas. In smaller hotels, the need to use CRM for monitoring staff-guest encounters was not very important as owners were always “on the hotel floor”. Indicate the importance of each statement to CRM implementation (5 point scale, irrelevant - essential) 1 – 60 rooms SD 61 + rooms SD t-value Increase guests’ loyalty 4.01 0.82 3.91 0.94 0.251 0.802 Increase service quality 4.32 0.76 4.12 0.97 0.054 0.164 Increase guests’ satisfaction 4.65 0.98 4.44 0.99 0.065 0.187 Process improvement 3.73 1.04 4.03 1.09 2.654 0.026* Increase profitability 3.87 1.03 3.66 1.23 1.138 0.393 Reduce guests’ complaints 3.44 1.21 3.79 1.09 0.037 0.039* Increase product quality 3.02 1.18 2.99 1.43 0.345 0.749 Reduce costs Increase employees’ 3.29 1.17 3.65 1.10 3.28 0.001* satisfaction 2.92 1.09 2.74 1.14 1.538 0.136 Table 5. Reasons for CRM implementation (* indicates significance at a=0.05) Organisational structure, structural factors, staff motivation, social and communication skills rather than qualifications, top management support and rewards were found to be perceived as the most important internal relationship factors for CRM success (Table 6). However, staff multi-skilling was perceived more important in smaller than larger hotels, while respondents from larger hotels reported higher importance of ICT to CRM success. Autonomous and interdepartmental teams and knowledge officers were perceived as more crucial in larger than smaller hotels. Interviewees claimed that multi-skilling is more difficult to achieve in large properties as a minimum number of staff is required in certain departments. Hence, boundary spanning teams are more valued in large hotels. p.
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Implementing Customer Relationship Management in the Hotel Sector

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